Gaylord Entertainment Company announced Thursday it has agreed to sell the Gaylord Hotels brand and the rights to manage its four hotels to Marriott International for $210 million.
Following consummation of the sale, Gaylord will continue to own its hotel properties and other businesses and will reorganize and elect to be treated as a real-estate investment trust effective 1 January 2013, focusing primarily on group-oriented destination hotels in urban and resort markets.
“The REIT structure allows us to benefit from a more efficient tax structure, and establish a platform to grow our distinct asset base through organic growth of our existing portfolio and, in time, through strategic acquisitions. Moreover, we believe that by working with Marriott International, our shareholders will benefit from significant property efficiencies and corporate overhead reductions, as well as revenue synergies which include Marriott’s ability to attract and market to large group customers. Based on our analysis to date, we anticipate annualized cost synergies, net of management fees, will total approximately $33 to $40 million. In addition, we believe we will have a unique competitive position in the hospitality REIT marketplace with a well capitalized balance sheet and a relatively predictable funds from operations stream,” said Colin V. Reed, chairman and CEO of Gaylord.
Looks like "extend and pretend" might come back to bite us after all.
The commercial mortgage-backed security delinquency rate hit a new high during May, according to Trepp. The reading of 10.04% for the month was the highest in history and represents an increase of 24 basis points from last month (9.8%) and 67 basis points from February (9.37%).
Loews Hotels & Resorts on Thursday announced the company has entered into a contract to acquire the 632-room Renaissance Hotel & Spa in Hollywood, California, from CIM Group. The acquisition is expected to be completed 16 June, and the property will rebrand immediately to the Loews Hollywood Hotel.
The company is finalizing the planning of an estimated $26-million renovation slated to begin this later this year with an expected completion during the summer of 2013.
Americans plan to travel in greater numbers this summer than in 2011 but will keep a watchful eye on what they spend on travel, said top travel executives from Best Western International, AAA and the U.S. Travel Association at the seventh annual Leisure Travel Summit in New York last week, reports HotelMarketing.com.
"While the economy improves and more Americans will travel this summer, travelers are more discerning than ever and looking for great value add-ons such as free breakfast, parking and Wi-Fi, which is now the most important free hotel amenity for travelers," said Dorothy Dowling, senior VP of marketing and sales for Best Western International.
A key driver for the increase in summer bookings is a rising rate in family travel, as panelists reported a return in whole families taking trips together, including multigenerational summer vacations. Panelists agreed that with an increase in family travel, travelers will likely see more suppliers, including tour groups along with hotels, catering to families and offering targeted promotions and amenities.
"Americans are resourceful and resilient, and they are going to find a way this summer to have a great vacation experience," said Bill Sutherland, VP of travel services for AAA.
As more people rely on disinfectant wipes and hand sanitizers, being germ-free is a priority, which is why Best Western International is taking clean to a new level.
The brand announced Wednesday a technological cleaning initiative it expects will set a new standard for cleanliness in hotels.
The brand’s new initiative, which already has been rolled out in 700 Best Western properties throughout North America, will implement the following procedures and items in the housekeeping process:
• ultraviolet inspection black lights used to uncover any biological matter or food particles undetectable by the human eye;
• ultraviolet sterilization wands, which sterilize frequently-touched items in the hotel, such as telephones, clocks, light switches and door handles;
• clean TV remotes, designed specifically to allow for disinfection; and
• pillow and blankets wrapped in single-use wraps.
Compiled by Stephanie Wharton.